Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.05%. On thelast day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of$10,500.00 and $13,250.00, respectively. On July 30, it made a payment of $5,000.00. Vertical Adventures will restore its zerobalance on August 31. Construct a full repayment schedule from July 8 to August 31.(Round all monetary values to the nearest penny.)(Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".)(Give all "Number of Days" quantities as fractions with denominator 365.)DateBalance Annualbefore InterestTransaction RateNumber Interest Accruedof Days Charged InterestPayment(+) orAdvancePrincipalAmountBalance afterTransaction(-)Jul 8$10,500.00Jul 307.05%Jul 317.05%Aug 147.05%Aug 317.05%

Variables in the question:Fixed interest rate=7.05%July 8, Advance made=$10500August 14, Advance…

Answered: Vertical Adventures has an open line of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2020, accounts receivable were $574,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2021 was as follows: Beginning balance $ 574,000 Credit sales 2,620,000 Collections (2,483,000 ) Write-offs (68,000 ) Ending balance $ 643,000 The company’s controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 0–60 days $ 430,000 4 % 61–90 days 98,000 15 91–120 days 60,000 25…
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